The U.S.-Bangladesh trade agreement is a significant win for their bilateral economic relations and strategic partnership. Crucially, the agreement is most beneficial for producers based in both nations, with the U.S. agreeing to cut tariffs on Bangladeshi goods and textiles. In return, American goods will gain expanded market access and new opportunities in Bangladesh.
This agreement is nothing short of a slap in the face for India. By granting Bangladesh zero-tariff access to the U.S. for textiles using American cotton or fibre, the deal fatally undermines both India's garment industry, which is still subject to 18% tariffs, and the cotton industry, with Bangladesh now incentivized to reject Indian-grown cotton in favor of its American counterpart.
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